Bitcoin's Inflation-Adjusted Struggle to Achieve the $100,000 Mark

By: Isha Das

Bitcoin's rise to what many believed was a historic $100,000 mark in late 2025 was an event celebrated with enthusiasm across the crypto community. Social media was abuzz with screenshots and celebratory posts, but a closer examination reveals a different narrative. According to Alex Thorn, head of research at Galaxy, when the price is adjusted for inflation using 2020 dollars, Bitcoin actually fell short of this milestone, peaking at only $99,848.

This adjustment is not merely an academic exercise; it highlights the significant impact of inflation on the valuation of assets like Bitcoin. Inflation diminishes the value of currency over time, meaning that a dollar bill in 2020 holds more purchasing power than the same bill would in 2025. Therefore, while nominally Bitcoin exceeded $100,000, in real terms, it never crossed this psychological barrier—a realization that serves as a stark reminder of the broader economic factors influencing the cryptocurrency markets.

Throughout 2025, the Consumer Price Index (CPI) reflected a considerable decline in purchasing power. Data from the Bureau of Labor Statistics indicates a rise in the CPI from 258.8 in 2020 to above 320 in 2025, symbolizing the dollar's inflationary decline. This differential caused the supposed $100,000 value of Bitcoin to equate to far less in 2020 dollar terms. For Bitcoin to reach a true $100,000 in 2020's purchasing power, its nominal price needed to hit approximately $125,000.

Beyond the individual narratives of triumph or missed targets, this discussion of Bitcoin's price underlines a broader retail and institutional need to consider real returns. Institutional investors typically measure success by real, inflation-adjusted gains rather than nominal price milestones. As Bitcoin matures and seeks acceptance as a macroeconomic asset, the focus may increasingly shift from headline-grabbing nominal highs to these more nuanced economic realities.